A blurred distinction between the home and the workplace could also have legal implications for side projects, 'everything you make during employment period belongs to us' clauses can sometimes be punched through or voided but it's harder to do if you can't show a clear work time and resources vs. personal time and resources boundary.
Some companies make "home office access points" for that use case: a WLAN access point that the employee has at home, which provides a WLAN just for the work devices, tunnels everything back to the company VPN and can be remotely managed.